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Percival Company wishes to sell wooden beams to home builders. The current market price of the beams is $950, and Percival knows it must accept
Percival Company wishes to sell wooden beams to home builders. The current market price of the beams is $950, and Percival knows it must accept the market price. Currently, the beams cost Percival $809 to produce. The company wishes to make a profit equal to 16% of the price. Which of the following strategies would help Percival accomplish their objective?
A. Increase the volume of sales.
B. Reduce production costs by $11 per unit.
C. Increase the sales price to $961.
D. Increase the production cost by $22 per unit.
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